U. SAUCON RAISES TAX BY 2 MILLS TO PAY INSURANCE

Upper Saucon Township homeowners will pay an additional 2 mills in real estate tax in 1986, which will be used to offset the township's increasing insurance premiums.

Township supervisors approved the tax increase last night during final consideration of the $1.9-million 1986 spending plan. They also voted to increase their pay to $2,000 a year.

A new state law permits governing bodies in municipalities to increase their compensations in relation to the populations of the municipalities. The Upper Saucon ordinance raising the level of pay was passed in accordance with the new law.

Under the ordinance, newly elected officials will be paid $2,000 a year. In 1986, the raise will be given to supervisor Chairman Donald Clum, who was re-elected in November, and newly elected Supervisor Phillip Spaeth. The other supervisors will be eligible for the increase upon their re-election.

Supervisors are now paid $25 per meeting.

The tax increase is the township's second 2-mill increase in two years. The 2-mill increase will cost property owners about another $20 in taxes in 1986, Rodgers has said. Prior to 1985, taxes had not been raised in the township for five years.

Township Manager Bernard Rodgers explained that the 2 mills, which will generate about $100,000, is needed in 1986 to pay for insurance costs. He said "drastic" insurance premiums cost the township $62,000 more this year than what had been budgeted.

In the 1986 budget, costs for liability insurance are expected to increase over 1985 figures from $18,000 to $57,000; for workmen's compensation insurance from $22,000 to $30,000 and for vehicle insurance from $24,000 to $38,000.

The 1985 budget totaled $2.06 million compared with $1.9 million for next year. Rodgers explained that this year's expenditures are larger because of costs paid out for improving the township's water system.

Supervisors also approved a 5 percent salary increase in 1986 for all township employees.

In other business, the purchase of two 1986 LTD Crown Victoria police cars at a total cost of $22,808 from Emmaus Ford, Allentown, was approved by supervisors. The two cars will replace existing police vehicles.